This salary phrase in job descriptions is ‘useless,’ says recruiter—here’s how to make sense of it

Pay transparency laws are on the rise nationwide, but so is the share of companies that use the ambiguous phrase “competitive salary” to describe what they’ll pay.

As of May, the phrase appeared in 3% of U.S. job postings on Indeed, up from 2.5% of postings at the same time last year, the employment website told CNBC Make It.

It’s a small but notable increase that reflects thousands of job posts with unclear pay ranges, according to Indeed.

Companies refer to a “competitive salary” in job postings either because they mistakenly believe it’ll entice candidates or, more often, to preserve their flexibility to offer different pay based on the qualities of a specific candidate, says Jeff Hyman, an executive recruiter of 28 years. 

For job seekers, though, “it’s a useless, throwaway line,” Hyman tells CNBC Make It.

“In theory, the term ‘competitive salary’ is supposed to mean that pay for the role is on par with what similar roles, in similar industries, and in similar locations offer,” says Jennifer Herrity, a career expert at Indeed. “But without further details in the job posting, the phrase puts the onus on the job seeker to know what a competitive pay range may look like.”

If you’re applying to jobs without clear pay ranges, here are a few ways to discuss salary during the hiring process.

Some employers might ask candidates their salary history — an illegal practice in some states and municipalities — and what they expect to make in a new role. But don’t be so quick to share that information. The reason: Those who speak first in a negotiation lose, Hyman says.

“As soon as you throw out a number, negotiation 101 says that that number becomes the anchor of the discussion,” he says. “You might have thrown out a number that’s 20, 30, 40% less than the company was thinking that they might need to pay, and so you can really shoot yourself in the foot.”

Rather than answer that line of questioning, “respectfully turn it around” to the company and “play dumb,” Hyman says. If asked how much you expect to earn, he suggests saying, “‘I’m really not sure. You’ve been at this a while, you’ve been seeing other candidates — what have you found to be market for this role?'”

“Answer with what I would call a non-answer,” Hyman says.

If the hiring team insists on a specific answer, however, offer your own range, he advises. The low-end number you give should be the “absolute lowest compensation” you’re willing to accept, while the high-end can be as much as 50% to 100% higher than your low-end figure. That wider range may be most applicable for applicants negotiating compensation that includes more than a base salary.

“But again, you should only do that if really pushed multiple times,” Hyman says. “It’s always the better strategy to let the company have the first crack at the numbers.”

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